The US dollar is consolidating its gains from earlier in the week, following the Federal Reserve’s refusal to set negative rates and President Donald Trump’s support for a strong dollar.
US Jobless Claims rose by nearly three million in the week ending May 8, worse than expected. The JOLTs job openings publication for March will provide another lagging, yet broad, view on the labour market.
EUR/USD remained depressed and fell to one-week lows on the back of a modest pickup in the US dollar demand.
GBP/USD has stabilized after falling to the lowest in five weeks. An update on Brexit talks may come at the end of the week.
USD/JPY has been consolidating its gains. Tokyo’s governor is set to publish a plan to ease the lockdown on the capital.
Gold and oil are on the rise for different reasons. Gold remains bid after topping $1,730, amid prospects of more monetary and fiscal stimulus, as well as speculation. The multi-year peak of $1,747 is in sight.
Oil prices have extended their rally amid hopes for rising Chinese demand and due to further cuts by OPEC members. WTI oil is hovering at around $28.
A packed day awaits investors, with US consumer data and German growth figures standing out. Market participants now look forward to the release of the flash version of the German and Eurozone GDP figures for the three months to March. Later during the early North American session, the US monthly Retail Sales data will influence the USD price dynamics and further contributed to produce some meaningful trading opportunities on the last day of the week.